Gold markets remain close for second day

New Delhi: Gold and jewellery establishments in many parts of the country remained closed today for the second day as traders protested against a budgetary proposal to levy 1 percent excise duty on jewellery.

Finance Minister Arun Jaitley in the Budget for 2016-17 had proposed 1 per cent excise duty on jewellery without input credit or 12.5 percent with input tax credit on jewellery excluding silver other than studded with diamonds and some other precious stones.

"Nearly 6,000 shops and establishments in the national capital alone are closed for the second day," Jain said.

Meanwhile, jewellers and goldsmiths in Jaipur, Lucknow, Chandigarh and Jammu also kept their shutters down today to join the nation-wide protest.

Jain said that in 2012, the UPA government had also proposed levying a 1 percent excise duty on unbranded jewellery, but had to discard the plan later.

Bullion traders and jewellers have called a three-day nation-wide strike to lodge their protest against the proposed levy.